ECL Finance Ltd, the NBFC arm of Edelweiss Financial Services Limited, today announced the public issue of Unsecured Redeemable Non-Convertible Debentures (NCDs) of the face value of Rs. 1000 each, aggregating to Rs. 2,000 million, with an option to retain over-subscription up to Rs. 2,000 million aggregating to a total of Rs. 4,000 million. The NCD’s are in the nature of subordinated debt with a tenure of 70 months.
The funds raised through this Issue will be used for the financing activities including lending and investments, to repay existing loans and for business operations including for capital expenditure and working capital requirements.
The NCDs offer investors an opportunity to lock in at an attractive interest rate of 12.00% p.a. with monthly, annual and cumulative options. The effective yield in monthly option works out to 12.68% for 70 months tenure and under cumulative option, investors will get 2.01 times of the invested amount at maturity.
Sharing his thoughts on the announcement, Mr. Rashesh Shah, Chairman & CEO, Edelweiss Financial Services Ltd. said, “With a decisive and a pro-reform government and RBI signaling a dovish policy outlook, the interest rate scenario has been on a softening trajectory. NCDs with their attractive returns offer a better yielding opportunity for retail investors amongst the other comparable options in debt. Every investor should have diverse investments which include debt and other asset classes. NCDs also provide liquidity as they are listed on the stock exchanges.”
The NCD Offering has received ‘CARE AA’ (Double A) and ‘BWR AA (Outlook: Stable)’ rating indicating the instruments with this rating are considered to have a high degree of safety for timely servicing of financial obligations and such instruments carry very low credit risk (please see footnote on CARE and Brickwork).
ECLF’s Annual Income & PAT have grown to Rs 8,123 mn & Rs 1,600.44 mn in FY14 from Rs 6,506 mn & Rs 1,212 mn for FY13 respectively. The Loan Book has grown significantly with a four year CAGR of 43.18% upto FY14 .
Axis Capital Limited and Edelweiss Financial Services Limited are the lead managers for this NCD Issue. The issue opens on June 17, 2014 and closes on July 2, 2014 with an option of early closure**. The NCDs will be listed on BSE Limited and National Stock Exchange of India Limited to provide liquidity to the investors.
The funds raised through this Issue will be used for the financing activities including lending and investments, to repay existing loans and for business operations including for capital expenditure and working capital requirements.
The NCDs offer investors an opportunity to lock in at an attractive interest rate of 12.00% p.a. with monthly, annual and cumulative options. The effective yield in monthly option works out to 12.68% for 70 months tenure and under cumulative option, investors will get 2.01 times of the invested amount at maturity.
Sharing his thoughts on the announcement, Mr. Rashesh Shah, Chairman & CEO, Edelweiss Financial Services Ltd. said, “With a decisive and a pro-reform government and RBI signaling a dovish policy outlook, the interest rate scenario has been on a softening trajectory. NCDs with their attractive returns offer a better yielding opportunity for retail investors amongst the other comparable options in debt. Every investor should have diverse investments which include debt and other asset classes. NCDs also provide liquidity as they are listed on the stock exchanges.”
The NCD Offering has received ‘CARE AA’ (Double A) and ‘BWR AA (Outlook: Stable)’ rating indicating the instruments with this rating are considered to have a high degree of safety for timely servicing of financial obligations and such instruments carry very low credit risk (please see footnote on CARE and Brickwork).
ECLF’s Annual Income & PAT have grown to Rs 8,123 mn & Rs 1,600.44 mn in FY14 from Rs 6,506 mn & Rs 1,212 mn for FY13 respectively. The Loan Book has grown significantly with a four year CAGR of 43.18% upto FY14 .
Axis Capital Limited and Edelweiss Financial Services Limited are the lead managers for this NCD Issue. The issue opens on June 17, 2014 and closes on July 2, 2014 with an option of early closure**. The NCDs will be listed on BSE Limited and National Stock Exchange of India Limited to provide liquidity to the investors.
